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Best Places Not To Pay Taxes #2

     There are places in this country where you will hear a large sucking sound from the taxman, and places where the taxes are much easier to tolerate. How does your state rank? Is it worth moving? Taxes come in all shapes and sizes, and some we don't think about very often. State and Federal income tax readily come to mind. You're stuck with Federal income tax but state taxes can be minimized or eliminated. Property taxes are an ongoing burden that take their toll every year and can add up to an obscene amount over the years as you try to enjoy the fruit of your lifelong earnings. After retirement your property taxes remain the same with there being very little relief for senior citizens. State sales taxes can also weigh heavily as your earnings better enable you to buy more toys. Car registration is a frequently overlooked tax that in some states will almost give you a heart attack.

    Where is the tax picture the rosiest and the gloomiest? From a regional standpoint you are better off in the west or south, and out of luck in the northeast. There certainly are exceptions that you have to coordinate with your situation and it's not always easy to sort out the differences. California and New York both get middle of the road tax scores, but they are two different worlds when it comes to car registration. A Benz or BMW can cost many thousands of dollars to register in California where registration fees are based on a car's value; with the annual fees only declining roughly 10% per year. Ouch!!! $100 will get the same car registered in New York where vehicle registration is based on vehicle weight. New Hampshire is one of the states without a state income tax, but the property tax is one of the highest in the nation. Oregon has no sales tax yet you had better be sitting down when you open your property tax bill.

    Which are the states with the best and worst overall tax scores? The best state hands down is (surprise) Wyoming. Named by Bloomberg magazine as the wealth friendliest state in America, and significantly ahead of the #2 state of Nevada. Wyoming has no state income tax, combined with low property and sales taxes. Rounding out the list of states providing the best tax situations ranked from the best score are Alaska, Florida, Louisiana, Tennessee, Washington (state), Alabama, Arizona, Colorado, Indiana, Mississippi, South Dakota, and Utah. The states you most want to leave when you look at their tax ranking are Rhode Island and Montana, followed closely by Washington DC, Maine, Minnesota, Nebraska, New York, Oregon, Vermont and Wisconsin. Maybe you need to do some more research into your own tax situation.

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